WeightWatchers 2015 Annual Report Download - page 8

We believe the healthcare market represents an important channel to reach new consumers. At the end of
fiscal 2014, we announced a strategic initiative with Humana, Inc. to offer our weight management services as a
part of coverage under certain employer-sponsored health plans. We continue to explore different approaches to
this market.
Our Clinical Efficacy and Reputation in the Marketplace
Weight Watchers is one of the most clinically-studied commercial weight management programs, with
dozens of peer-reviewed publications in the last 20 years. For example, in 2013, a randomized controlled trial
conducted by the Baylor College of Medicine researchers and funded by us was published in The American
Journal of Medicine and found that overweight and obese adults following Weight Watchers lost significantly
more weight at six months than those who tried to lose weight on their own. Our efficacy and the value of our
offerings are also well-acknowledged in the marketplace. For instance, in 2016, we again were recognized by
U.S. News & World Report in the “2016 Best Diets” rankings. We ranked #1 for “Best Weight-Loss Diet” and
tied for #1 for “Best Commercial Diet Plan” and “Easiest Diet to Follow.”
Marketing and Promotion
Our communications with consumers and other promotional efforts enhance our brand image and
awareness, and motivate both former and potential new customers to join Weight Watchers meetings or purchase
our Online products. We also recently entered into a Strategic Collaboration Agreement with Oprah Winfrey,
pursuant to which, among other things, Ms. Winfrey provides us with services in her discretion to promote the
Company and our programs, products and services, including in advertisements and promotions, and making
personal appearances on our behalf. The announcement of our partnership with Ms. Winfrey led to more than one
billion earned media impressions. Further information on this agreement and our partnership with Ms. Winfrey
can be found below under “—History—Winfrey Transaction.”
We advertise primarily in national media vehicles (television, digital, print, radio, etc.), which are selected
based on their efficiency and effectiveness in reaching our target audience. We develop and maintain a high level
of engagement with new and potential customers on various social platforms including Facebook and Twitter.
While our traditional advertising schedule generally supports the three key marketing campaigns of the year,
winter, spring and fall, we communicate with consumers in the Online space in real time throughout the year.
Also, we utilize brand ambassadors, including from time to time celebrity spokespersons, as part of our
advertising.
In addition to the above advertising channels, we take advantage of other channels for which we are
uniquely positioned given our long history and network of leaders, members and subscribers. The word of mouth
generated by our current and former customers is an important source of new customers. These referrals,
combined with our strong brand and known effectiveness, enable us to attract new and returning customers. We
also carry out many of our key public relations initiatives through the efforts of current and former Weight
Watchers leaders, members and subscribers, including from time to time celebrities.
Additionally, Weight Watchers Magazine reinforces the value of our brand and serves as an important
marketing tool to both existing and potential customers. We also utilize mailing campaigns and the
WeightWatchers.com website to attract new and returning customers and to engage current customers.
Seasonality
Our business is seasonal due to the importance of the winter season to our overall recruitment environment.
Our advertising schedule generally supports the three key recruitment-generating seasons of the year: winter,
spring and fall, with winter having the highest concentration of advertising spending.
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